Market Trends of Data Processing and Hosting Services Industry
This section covers the major market trends shaping the Data Processing & Hosting Services Market according to our research experts:
Web Hosting is Gaining Traction Due to Emergence of Cloud-based Platform
- Web hosting services are gaining traction to cater to the rising demand from the client requirement that is suitable as per the selected web hosting service. In addition, the growing cloud services adoption in organizations is also creating opportunities for the web hosting segment over the forecast period.
- The cloud emergence is monumental in modernizing data management and hosting services. It is a cost-effective method for companies to take advantage of modern technology and architecture without the enormous upfront cost of purchasing, installing, and configuring the required hardware, software, and infrastructure.
- Also, the large enterprises were able to adapt to an evolving data-driven marketplace very quickly, with the help of their existing resources and capabilities to manage them very effectively. Further, SMBs worldwide also witness a growing demand for cloud-based hosting services, which is expected to drive the web hosting segment over the forecast period. For instance, according to Digital Ocean, in 2021, 74% of enterprises indicated using cloud hosting/infrastructure services. Moreover, 66% of tech-based SMBs and 44% of traditional SMBs indicated using cloud hosting services.
- The substantial presence of BFSI across the emerging regions of North America, Asia Pacific, and Europe have significantly driven an increased digital services penetration. It generates massive demand for analyzing enormous data generated through multiple data processing techniques, thereby fueling the market demand during the forecast period.
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Asia Pacific to Register as the Largest Growth During the Forecast Period
- The Asia-Pacific region is expected to witness significant growth over the forecast period, owing to the region's high percentage of the World Internet Population and rapid shift towards cloud services by large organizations and SMEs. Besides international market vendors like IBM and Amazon setting up in the region, some homegrown giants like Huawei Investment & Holding Company are transforming the IT landscape.
- Further, the growing digitalization in every industry across countries like China, Japan, and India will significantly drive the demand for data processing and hosting services. Due to constantly evolving technology and the relatively low additional cost of most new services, many end-user industries frequently upgrade their existing services and offer new ones to attract or retain customers.
- Strong government backing and substantial private sector investments are boosting the cloud computing industry's growth. The South Korean government deployed cloud computing technologies to improve its e-government services, banking on the country's super-fast internet connectivity and stable LTE availability. It is expected to positively contribute to the market's growth over the forecast period.
- Additionally, the region is expected to witness growth, owing to small and medium organizations' investments. SMEs are investing to increase the adoption of cloud-based and technologically advanced solutions. For instance, according to recent data from the Ministry of Micro, Small, and Medium Enterprises, India includes 50 million MSMEs, making it among the world's largest MSMEs. Given that the government and MSMEs are relying on scalable IT systems and solutions, it is understandable that they shift their processes and sensitive information to the cloud, thus significantly driving the market's growth.
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